Economic Growth and Income Inequality

Income inequality and poverty have been high in Sub- Saharan Africa (SSA). These have been aggravated by low levels of economic growth. But whether the high inequality levels have been the cause of growth has been the subject of a number of studies. One study found that high inequality levels in SSA negatively affects growth prospects in the medium term but found the effect to be weak and the relationship not robust. Another study found that inequality affected growth through a number of channels which included; political instability, reduction in tertiary and secondary education investment, and increase in fertility. This book investigates how economic growth and income inequality evolved in Malawi between 1980 and 2005. It also analyses the effects of growth and inequality on poverty. The study uses POVCAL computational tool, and analysis of data from secondary sources to achieve its objectives. The book should help in showing how growth and inequality behaved and how the two affected poverty. This should help in shedding more light to students, professionals and policy makers working in this area.